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GNC

Greencore Group LSE:GNC Stock Report

Last Price

UK£1.06

Market Cap

UK£555.0m

7D

-1.3%

1Y

-17.4%

Updated

26 Jun, 2022

Data

Company Financials +
GNC fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance2/6
Financial Health3/6
Dividends0/6

GNC Stock Overview

Greencore Group plc, together with its subsidiaries, engages in the manufacture and sale of convenience food products primarily in the United Kingdom and Ireland.

Rewards

Trading at 13.6% below our estimate of its fair value

Earnings are forecast to grow 31.49% per year

Became profitable this year

Risk Analysis

Has a high level of debt


Greencore Group Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Greencore Group
Historical stock prices
Current Share PriceUK£1.06
52 Week HighUK£1.50
52 Week LowUK£1.01
Beta1.17
1 Month Change-4.00%
3 Month Change-21.25%
1 Year Change-17.44%
3 Year Change-51.78%
5 Year Change-57.07%
Change since IPO19.23%

Recent News & Updates

Shareholder Returns

GNCGB FoodGB Market
7D-1.3%1.8%2.3%
1Y-17.4%-22.7%-8.6%

Return vs Industry: GNC exceeded the UK Food industry which returned -22.7% over the past year.

Return vs Market: GNC underperformed the UK Market which returned -8.6% over the past year.

Price Volatility

Is GNC's price volatile compared to industry and market?
GNC volatility
GNC Average Weekly Movement3.9%
Food Industry Average Movement4.5%
Market Average Movement5.5%
10% most volatile stocks in GB Market10.8%
10% least volatile stocks in GB Market2.8%

Stable Share Price: GNC is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: GNC's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199113,000n/ahttps://www.greencore.com

Greencore Group plc, together with its subsidiaries, engages in the manufacture and sale of convenience food products primarily in the United Kingdom and Ireland. The company provides various products, including sandwiches, salads, sushi, chilled snacking, chilled ready meals, chilled soups and sauces, chilled quiche, ambient sauces and pickles, and frozen Yorkshire Puddings. It is also involved in the trading of Irish ingredients; finance activities; and property business.

Greencore Group Fundamentals Summary

How do Greencore Group's earnings and revenue compare to its market cap?
GNC fundamental statistics
Market CapUK£555.01m
Earnings (TTM)UK£26.10m
Revenue (TTM)UK£1.52b

21.3x

P/E Ratio

0.4x

P/S Ratio

Is GNC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
GNC income statement (TTM)
RevenueUK£1.52b
Cost of RevenueUK£1.05b
Gross ProfitUK£469.30m
Other ExpensesUK£443.20m
EarningsUK£26.10m

Last Reported Earnings

Mar 25, 2022

Next Earnings Date

Jul 26, 2022

Earnings per share (EPS)0.05
Gross Margin30.91%
Net Profit Margin1.72%
Debt/Equity Ratio68.9%

How did GNC perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is GNC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for GNC?

Other financial metrics that can be useful for relative valuation.

GNC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.5x
Enterprise Value/EBITDA9.6x
PEG Ratio0.7x

Price to Earnings Ratio vs Peers

How does GNC's PE Ratio compare to its peers?

GNC PE Ratio vs Peers
The above table shows the PE ratio for GNC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average15.9x

Price-To-Earnings vs Peers: GNC is expensive based on its Price-To-Earnings Ratio (21.3x) compared to the peer average (15.9x).

Price to Earnings Ratio vs Industry

How does GNC's PE Ratio compare vs other companies in the U.K. Food Industry?

Price-To-Earnings vs Industry: GNC is expensive based on its Price-To-Earnings Ratio (21.3x) compared to the UK Food industry average (15.9x)

Price to Earnings Ratio vs Fair Ratio

What is GNC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

GNC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio21.3x
Fair PE Ratio21.6x

Price-To-Earnings vs Fair Ratio: GNC is good value based on its Price-To-Earnings Ratio (21.3x) compared to the estimated Fair Price-To-Earnings Ratio (21.6x).

Share Price vs Fair Value

What is the Fair Price of GNC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GNC (£1.06) is trading below our estimate of fair value (£1.22)

Significantly Below Fair Value: GNC is trading below fair value, but not by a significant amount.

Price to Earnings Growth Ratio

PEG Ratio: GNC is good value based on its PEG Ratio (0.7x)

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Future Growth

How is Greencore Group forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE

31.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: GNC's forecast earnings growth (31.5% per year) is above the savings rate (0.9%).

Earnings vs Market: GNC's earnings (31.5% per year) are forecast to grow faster than the UK market (10.9% per year).

High Growth Earnings: GNC's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GNC's revenue (3.9% per year) is forecast to grow slower than the UK market (4.1% per year).

High Growth Revenue: GNC's revenue (3.9% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: GNC's Return on Equity is forecast to be low in 3 years time (13.5%).

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Past Performance

How has Greencore Group performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE

-10.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: GNC has high quality earnings.

Growing Profit Margin: GNC became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: GNC's earnings have declined by 10.9% per year over the past 5 years.

Accelerating Growth: GNC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: GNC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Food industry (34.6%).

Return on Equity

High ROE: GNC's Return on Equity (5.9%) is considered low.

Discover strong past performing companies

Financial Health

How is Greencore Group's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: GNC's short term assets (£355.7M) do not cover its short term liabilities (£435.9M).

Long Term Liabilities: GNC's short term assets (£355.7M) do not cover its long term liabilities (£393.6M).

Debt to Equity History and Analysis

Debt Level: GNC's net debt to equity ratio (50.2%) is considered high.

Reducing Debt: GNC's debt to equity ratio has reduced from 81% to 68.9% over the past 5 years.

Debt Coverage: GNC's debt is well covered by operating cash flow (35.4%).

Interest Coverage: GNC's interest payments on its debt are well covered by EBIT (3.6x coverage).

Balance Sheet

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Dividend

What is Greencore Group current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

3.46%

Forecast Dividend Yield

Dividend Yield vs Market

Notable Dividend: Unable to evaluate GNC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate GNC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GNC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GNC's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: GNC is not paying a notable dividend for the UK market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as GNC has not reported any payouts.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

3.6yrs

Average management tenure

CEO

Greencore Group has no CEO, or we have no data on them.

Leadership Team

Experienced Management: GNC's management team is considered experienced (3.6 years average tenure).

Board Members

Experienced Board: GNC's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Top Shareholders

Company Information

Greencore Group plc's employee growth, exchange listings and data sources

Key Information

  • Name: Greencore Group plc
  • Ticker: GNC
  • Exchange: LSE
  • Founded: 1991
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Implied Market Cap: UK£555.011m
  • Shares outstanding: 525.58m
  • Website: https://www.greencore.com

Number of Employees

Location

  • Greencore Group plc
  • No. 2 Northwood Avenue
  • Northwood Business Park
  • Dublin
  • Co. Dublin
  • D09 X5N9
  • Ireland

Listings

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/26 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/03/25
Annual Earnings2021/09/24


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.